Sociedad Quimica y Minera S.A.

Good day and welcome to the SQM first quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Kelly O'Brien, Head of Investor Relations. Please go ahead.

Good morning. Thank you for joining SQM's first quarter 2022 earnings conference call. This conference call will be recorded and is being webcast live. Following this call, you will be able to access the webcast at our website, www.sqm.com. Our earnings press release and a presentation with a summary of the results have been uploaded to our website, where you can also find a link to the webcast. Speaking on the call today will be Ricardo Ramos, Chief Executive Officer, and Gerardo Illanes, Chief Financial Officer, Carlos Diaz, Executive Vice President of Lithium Business, and Pablo Altimiras, Executive Vice President of the IDI and I-Trace Businesses will be available to answer any questions. Before we begin, let me remind you that statements in this conference concerning the company's business outlook, future economic performances, anticipated profitability, revenues, expenses, or other financial items, anticipated cost energy, and product or service line growth, together with other statements that are not historical facts are forward-looking statements as that term is defined under federal securities laws. Any forward-looking statements are estimates reflecting the best judgment of SQM based on currently available information and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially as those stated in such statements, including our ability to successfully implement this sustainable development plan. Risks, uncertainties, and factors that could affect the accuracy of such forward-looking statements are identified in our public filing made with the U.S. Securities and Exchange Commission and in our earnings release issued last night. These forward-looking statements should be considered in light of those factors. We assume no obligation to update such statements, whether as a result of our new information, future developments, or otherwise, except as required by law. And I also wanted to mention, before I pass the phone over to Ricardo Ramos, that Felipe Smith is also here to answer questions related to the lithium market. Ricardo?

Thank you. First, good morning and thank you for joining the call today. Our first quarter results were a milestone for us, a reflection of several positive conditions, higher prices in all our business lines, where significant increases in lithium prices stand out, and benefits of our successful long-term operational and commercial strategy. Today, we can proudly report that we are a leader in the lithium industry. We have almost tripled our production levels in three years while we have significantly decreased extraction of brands. We are the most integrated deep-dive producer in each country of origin, delivering high-quality products that can be used directly for the production of high-end battery components. Related to our operations in the Celar Atacama, it is important to remember that SKM began its project by acquiring the participation from other producers. in 1993, who assumed the risk, developed, invested, and executed the project. It has not been an easy task. The Natural Resources was not well known, and our project has had its ups and downs. Mining activities require long periods of development, dialogue, and collaboration with the neighboring communities, relevant investment from shareholders, and above all, a strong team to innovate and develop technologies to operate the Natural Resources. Our first quarter results include payments related to the agreement with CORPO and tax provisions that total approximately $800 billion. In total, the amount is similar to the earnings reported by all of our business during the first quarter of this year. SQM's lithium business is a very good example of a successful public-private partnership. No other operations deliver more resources proportionally to the Chilean coffers. Approximately 60% of the operating margin from lithium is dedicated to payments to corporate taxes. We continue to analyze new ideas and study new projects in all our businesses. We will review our investment plan in the coming months and we should update our projections following that review. It's very likely that we will increase the resources oriented to the development of business in Chile and abroad. We continue growing and investing in all our businesses. In the IOD market, we remain on target to increase our capacity 1,000 metric tons next year and 2.5 thousand metric tons in 2024. In parallel, we're increasing our nitrate source production by 320,000 metric tons, which will allow us to meet future demand growth of nitrates for fertilizer and solar source. Finally, for lithium, We remain on target to reach the 180,000 metric tons in the coming months. Our plan to reach the 210,000 metric tons and 40,000 metric tons of capacity of lithium carbonate and lithium hydroxide respectively is advancing well. As you know, in April we held board elections. I look forward Working with this new group of diverse professionals, we work to bring SQM and its participation and contribution to Chile and its surrounding communities to a new level.